If by Purchasing a Little More Milk and a Little

question 50

Multiple Choice

If by purchasing a little more milk and a little less ice cream you could increase your total utility,

• A)the MU of milk must be greater than that of ice cream
• B)the MU of ice cream must be greater than that of milk
• C)the MU/P of milk must be greater than that of ice cream
• D)milk must be cheaper than ice cream
• E)the MU of milk will increase

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Definitions:

Treasury Bills

Represent short-term government securities issued at a discount from the par value and mature without interest payments.

Collection Time

The typical period it takes for a company to receive payments due from its clients.

Lockbox System

A service provided by banks to companies for the collection of payments from customers, involving the use of a special address (PO Box) where customers send their payments.

Treasury Bills

Short-term U.S. government debt obligations with a maturity of one year or less, considered a safe and liquid investment.